Updated Specification for the Two-Pot retirement system
(Media Release: Issued and provided by the South African Revenue Service)
Since the implementation of the Two-Pot Retirement System on 1 September 2024, SARS has noted the challenges that the industry has been experiencing.
As such, another enhancement has been incorporated into IBIR-006 Tax Directives Interim Interface Specification Version 6.708. The enhancement and change inter alia will address additional validations for the de minimis (minimum amount that can be taken as cash) rule.
Currently, if a taxpayer has more than one policy with the same retirement annuity fund, to calculate the de minimis, the SARS system uses the value on the total gross benefit on the retirement amount but ignores any total benefit amounts from previous directives against the Financial Sector Conduct Authority number, registration number/approved fund number, for accruals from 1 October 2007.
Read the full press release here.